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2023 (1) TMI 848 - AT - Income TaxDemand raised u/s 200A - inadvertent mistake in mentioning wrong TAN while applying lower percentage of tax rate u/s 194C - CIT(A) thus directed the AO to grant relief from the demand arising for wrong mention of TAN after due verification of facts - HELD THAT:- We find that the order of the CIT(A) in granting relief to the assessee is founded on fair play and natural justice. In the instant case, the assessee has obtained two TAN from the Department in its name, one is taken for office at Bina Madhya Pradesh and another one is taken at Delhi. The assessee has deducted TDS on contractual payments to its holding company u/s 194C of the Act @0.25% as per the lower deduction certificate issued u/s 197 to the holding company of the assessee company. Based on the certificate issued, the assessee has deducted TDS @ 0.25% as mandated in the certificate. While depositing the TDS deducted, the assessee has wrongly mentioned the TAN allotted for Delhi office instead of Bina Madhya Pradesh Office. This fact was also brought to the notice of the Department immediately but the defect could not be cured in the absence of any provision for such type of rectification. CIT(A), in the factual matrix, has taken a just and fair decision and reversed the demand under Section 200A attributable to merely wrong mention of TAN in the TDS deposit challan. We see no error in the relief granted by the CIT(A) on equitable grounds. Consequently, the order of the CIT(A) is upheld. Appeal of the Revenue is dismissed.
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